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Britt Erica Tunick is an award winning financial journalist who has spent the past 17 years writing about virtually every aspect of finance. She has mastered the art of boiling down complicated financial topics for readers to understand. |
You know about ads from outfits saying they can lower the interest rates you're paying on your credit cards? Well, Uncle Sam has spoken and he's saying don't believe it! Beware Of Companies That Promise to Eliminate Your Debt By Britt Erica Tunick We’ve all seen and heard countless TV and radio ads from companies promising to help anyone with significant debt get out from under their debt by negotiating lower interest rates or settlements with debtors. Odds are just as good, however, you don’t know anyone who has ever actually used a debt relief program and received everything promised in these ads. That’s because, as we’ve all been told countless times, if something seems too good to be true it almost always is. It should come as no surprise the Federal Trade Commission is warning consumers to beware of companies that contact you with promises to help save you thousands of dollars and get out of debt by negotiating with your credit card companies to get you lower rates. This is particularly true if such companies ask for upfront fees, promising to refund such fees if they are unsuccessful. The FTC’s warning comes after the regulator recently halted a nationwide scam from a debt relief company that scammed people out of millions of dollars through a debt reduction telemarketing campaign. Remember never send money to anyone who calls with unsolicited offers for good or services, especially if you have no way of verifying what they are calling about is legitimate. In reality, few credit card companies will ever work with third parties to negotiate lower rates for users. So there is no point paying someone to have the same conversation you can have with any of your creditors. Surprising as it may seem, if you have at least been making the minimum payments on your credit cards and can demonstrate offers from competing credit card companies promising lower interest rates or 0% interest rollover offers, there is a good chance you will be able to get your current card company to lower your rate at least a bit. If, however, you have been carrying a high balance on a credit card and have not been paying anything, there is no point wasting your breath particularly if you are already receiving calls from collection agencies. If that is the case, your best bet is to research legitimate debt settlement companies that can help you create a long-term debt settlement plan. |
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